Budget problems are hitting home throughout New Mexico, and city governments are being forced to lay people off. But Gov. Bill Richardson said things could be worse.

Thirty-three states added jobs last month, according to the U.S. Bureau of Labor Statistics. Maryland picked up almost 36,000 jobs in a month. New Mexico lost 2,200 jobs in March.

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Still, Richardson said while the state's unemployment rate is holding at 8.8 percent, New Mexico is doing better than other states.

"Well, you know, our unemployment is high, but it's not as high as the national average," said Richardson.

Richardson said there are three core sectors that continue to do well during rough times: film, high-tech and renewable energy.

"We just announced 1,500 jobs here in Rio Rancho," said Richardson. "Solar energy. We're doing real good in renewable energy, but manufacturing is where it's slowed up."

Richardson said people in his administration are doing everything they can, especially now that the economy seems to be picking up.

"We're cutting thousands of state government jobs because of our budget shortfall, but I think our economy's improving because we have some new good tax incentives," said Richardson.

Richardson said it's about keeping those taxes low to allow business to develop.

"So we're going to continue being pro-business, lowering taxes," said Richardson. "This is why I didn't want to raise taxes during the session, and we won that. It's important to have a good business climate in a time of economic downturn."

Richardson said he's focused on adding good clean jobs, not just for the Albuquerque and Rio Rancho areas, but for the whole state.